Orange Complaint to Movistar to The CNMC by Their Latest Improvements in Fusion

Orange is in a difficult situation since Vodafone bought ONO to be moved to the background in the deployment of fiber where will his two main rivals end the year with 10 million homes wired for Movistar and 8 million in the union of Vodafone with ONO to 1 million homes that will be Orange.

This situation has led to Orange has rethink their situation to continue competing under equal conditions in the medium term at a time in which converged offerings play a role fundamental to retain customers, especially when it’s a fiber connection and more after the last offers of Movistar Fusion.

Orange not interested in an agreement as the reached and Movistar Yoigo which gives us an idea of how similar that can be both operators prices so you are looking for is to be able access to the fiber of Movistar with advantages similar to the indirect ADSL (currently 6 euros over the official bid of Orange), allowing him to compete in areas where does not come with its own fiber network.

For this reason, has denounced before the CNMC than past offerings of Movistar Fusion they can not be replicated by competitors as required by the current regulation, unless they engage in negative margins due mainly to two factors:

  • The current high price of NEBA fiber (wholesale price) makes impossible that they can migrate from ADSL to fiber without cost as it does Movistar, so as a precautionary, the CNMC requests the suspension of the marketing of these offerings immediately and It requested the review for NEBA prices.
  • The incorporation in all merge television bidding packages is not replicable because of the uniqueness of some of the content and therefore requested that those content audiovisual put at disposal of other operators offering wholesale cost equivalent to those supported by Movistar.

In addition Orange requested that the CNMC than ensure the quality of the copper network on which the alternative have made large investments and follow not deteriorate while Telefónica will abandon it for its new fiber network.

Finally, Orange took the opportunity to remind that it considers it essential to the urgent review of the market analysis (especially the 4, 5 and 15) by the CNMC that suits the actual situation of the currently competition in these markets, very different from the last review of the year 2008.

It is striking as difference with the earlier complaint to Fusion in which went hand in with Vodafone, Orange has summoned the press to make this announcement but it is not surprising that they want to be heard given the passivity of a regulator whose haste in reviewing markets, could be of vital importance at the moment with a few competitors every day stronger. We will watch for the reactions.